Office, Industrial & Retail

Transcription

1 Market Report 2Q 2016 Office, Industrial & Retail Puget Sound Region, Washington Bellevue Seattle Tacoma

2 Office Report Puget Sound Region Second Quarter % VACANCY RATE The office vacancy rate in the Seattle/Puget Sound market area decreased to 7.4% at the end of the second quarter The vacancy rate was 7.7% at the end of the previous quarter. 921,121 NET ABSORPTION Net absorption for the overall Seattle/Puget Sound office market was positive 921,121 square feet. That compares to positive 1,150,525 square feet in the first quarter $30.28 ASKING RATES The average quoted rental rate for available office space, all classes, was $30.28 per square foot per year at the end of the second quarter This represented a 1.8% decrease from the end of the previous quarter. 1 DELIVERED CONSTRUCTION One building totaling 291,000 square feet was completed in the Seattle/Puget Sound market area. This compares to four buildings totaling 365,710 square feet that were completed in the previous quarter. Noted Lease Transactions Tenant Building Size (SF) Market Submarket Avalara Hawk Tower 133,239 SF Seattle Pioneer Sq Redfin Hill7 112,990 SF Seattle Seattle CBD Providence Health and Services Met Park East 80,248 SF Seattle Seattle CBD N/A Koll Bellefield 65,500 SF Eastside Bellevue Noted Sale Transactions Buyer Building Sale Price Market Submarket Sterling Centre I, LLC Symetra Center $185,000,000 Eastside Bellevue Kennedy-Wilson Properties, Ltd. Eastgate Office Park $ 74,725,000 Eastside Bellevue DIP SPV Company 12, LLC Redmond Technology Center $ 30,250,000 Eastside Redmond & CBA

3 AVERAGE ASKING RATES $31.00 $30.60 $30.20 $29.80 $29.40 $29.00 Featured Office Transaction 2,500,000 VACANCY VS. ABSORPTION 9.0% South Seattle Business Park E Marginal Way, Seattle, WA 2,000,000 1,500,000 1,000, , % 7.0% 6.0% 5.0% SCG South Seattle Business Park, LLC purchased the 97,653 square foot property from Goodman SSBP, LLC on May 10, 2016 for $9,500,000. This South Seattle property is a great value-add purchase with a stable mix of industrial and office tenants in an irresplaceable location. NAI Puget Sound Properties represented the buyer in this investment sale transaction. Absorption Vacancy Office Market Statistics MARKET # BLDGS RBA (SF) DIRECT VACANT % QUOTED RATES (PSF/YR, FS) Seattle 1,727 79,381,823 5,516,452 5,775, % $36.49 Eastside 1,433 48,703,189 3,012,636 3,197, % $33.95 Northend 1,584 21,875,655 1,601,929 1,632, % $22.98 Southend 1,078 20,564,673 1,736,568 1,804, % $24.67 Tacoma 1,923 20,561,984 1,545,416 1,648, % $21.10 Totals 7, ,087,324 13,413,001 14,058, % $30.28 Bellevue Seattle Tacoma

4 Industrial Report Puget Sound Region Second Quarter % VACANCY RATE The industrial vacancy rate in the Seattle/Puget Sound market area remained at 4.3% at the end of the second quarter Flex projects reported a vacancy rate of 6.0%; Warehouse rates reported a vacancy rate of 4.1%. 749,649 NET ABSORPTION Net absorption for the overall Seattle/Puget Sound industrial market was positive 749,649 square feet.. Flex building market net absorption was positive 247,305 square feet; warehouse net absorption was 502,344 square feet. $7.45 ASKING RATES The average quoted asking rental rate for available Industrial space was $7.45 per square foot per year at the end of the second quarter At the end of the quarter, flex rates were $15.40 per square foot, and warehouse rates were $6.22 per square foot. 5 DELIVERED CONSTRUCTION Five buildings totaling 724,043 square feet were completed in the Seattle/Puget Sound market area. This compares to 10 buildings totaling 1,115,205 square feet that were completed in the previous quarter. Noted Lease Transactions Tenant Building Size (SF) Market Submarket Amerisource Des Moines Creek BP - Phase III 230,899 SF Southend Rainier/Beacon Hill Ind Ozburn-Hessey Logistics LLC Pacific Gateway BP - Bldg ,000 SF Southend Kent Valley N Ind Partners Crackers Des Moines Creek BP- Phase III 149,600 SF Southend Rainier/Beacon Hill Ind Coca-Cola Renton Logistics Center 137,520 SF Southend Renton Ind Noted Sale Transactions Buyer Building Sale Price Market Submarket Pine Forest Properties, Inc. Westview 522 $32,200,000 Eastside Woodinville NWB Totem Lake LLC The Benaroya Company $28,011,769 Eastside Kirkland & CBA

5 $6.35 $6.30 $6.25 $6.20 $6.15 AVERAGE ASKING RATES warehouse only $6.10 2,500,000 VACANCY VS. ABSORPTION warehouse only 4.4% Featured Industrial Transaction & nd Avenue South, Kent, WA & S. 188th Street, Kent, WA 2,000,000 1,500,000 1,000, , % 4.2% 4.1% 4.0% Industrial Property Trust, Inc. (IPT) acquired two Prologis properties in the Kent Valley (West Valley Business Park and West Valley Commerce Center) for $31,602,000. The two parks consist of four buildings totally 266,295 square feet now named Kent IP. 0 Absorption Vacancy 3.9% NAI Puget Sound Properties represented the buyer in this investment sale transaction. Flex Market Statistics MARKET # BLDGS RBA (SF) DIRECT VACANT % QUOTED RATES (PSF/YR) Seattle 160 6,910, , , % $16.22 Eastside 309 8,205, , , % $16.76 Northend 238 7,804, , , % $15.74 Southend 213 6,224, , , % $13.33 Tacoma 106 1,633,358 55,383 58, % $12.81 Totals 1,026 30,778,818 1,768,900 1,858, % $15.68 Warehouse Market Statistics MARKET # BLDGS RBA (SF) DIRECT VACANT % QUOTED RATES (PSF/YR) Seattle 1,851 51,302, , , % $10.30 Eastside ,114, , , % $ 9.23 Northend 1,411 43,952,042 1,629,771 1,697, % $ 7.00 Southend 1, ,259,931 3,102,702 3,352, % $ 5.92 Tacoma 1,816 70,284,451 4,932,321 4,934, % $ 5.23 Totals 7, ,913,623 11,018,377 11,491, % $ 6.35 Bellevue Seattle Tacoma

6 Retail Report Puget Sound Region Second Quarter % VACANCY RATE The retail vacancy rate in the Seattle/Puget Sound market area decreased in the second quarter 2016, ending at 3.7%. The vacancy rate was 4.1% at the end of the previous quarter. 496,092 NET ABSORPTION Retail net absorption was strong this quarter, with positive 496,092 square feet absorbed in the quarter. In first quarter 2016, net absorption was positive 334,768 square feet. $18.15 ASKING RATES Quoted rents ended the second quarter 2016 at $18.15 per square foot per year. That compares to $17.80 per square foot in the previous quarter. 6 DELIVERED CONSTRUCTION Six buildings totaling 89,146 square feet were completed in the Seattle/Puget Sound retail market. Two buildings with 15,300 square feet were completed in first quarter Noted Lease Transactions Tenant Building Size (SF) Market Submarket Everett Clinic TOP Food & Drug 52,662 SF Northend Edmonds/Lynnwood Big Lots Westgate South Shopping Ctr 43,327 SF Pierce Tacoma Suburban N/A 1011 Auburn Way S 28,000 SF Southend Federal Way/Auburn REI Bellevue Central 20,000 SF Eastside Suburban Bellevue Noted Sale Transactions Buyer Building Sale Price Market Submarket Donahue Schriber CRE Interbay Urban Center $47,817,900 Seattle Seattle Vulcan Real Estate Bellevue Plaza $43,350,000 Eastside Bellevue Merlone Geier Mgmt, Inc. Alderwood Plaza $40,500,000 Northend Lynnwood & CBA

7 AVERAGE ASKING RATES $18.20 $18.00 $17.80 $17.60 $17.40 $17.20 VACANCY VS. ABSORPTION Featured Retail Transaction Plateau th Ave SE, Sammamish, WA 600, , , , , % 4.0% 3.0% Bright Horizons, a child care and early education center, signed a lease with Plateau 120, LLC for a 15,085 SF space. The property is a new, 5-story apartment building in the heart of the Sammamish school area. The lease will commence on April 1, , % NAI Puget Sound Properties represented the landlord in this transaction. Absorption Vacancy Retail Market Statistics MARKET # BLDGS GLA (SF) DIRECT VACANT % QUOTED RATES (PSF/YR, FS) Seattle 3,157 26,143, , , % $26.47 Eastside 1,715 27,322, , , % $23.10 Northend 3,736 46,609,449 1,451,929 1,517, % $17.51 Southend 2,281 31,425,670 1,245,249 1,286, % $17.51 Tacoma 4,137 41,522,791 2,134,379 2,290, % $15.28 Totals 15, ,023,881 6,046,463 6,378, % $18.15 Bellevue Seattle Tacoma

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